TO: Interested Parties

FROM:    Lori Lodes, Climate Power Executive Director

David Kieve, EDF Action President

Gene Karpinski, LCV President

DATE: April 2024

RE: The Facts about Electric Vehicles

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As election season heats up, electric vehicles (EVs) have become a political lightning rod, with critics in the GOP and the fossil fuel industry serving up increasingly inflammatory attacks. The violent rhetoric reached a veritable fever pitch as the Biden administration finalized new pollution standards for automobiles last month – which will slowly ramp up from 2027-2032 – with false claims about “car bans” and “blood baths” drowning out reality. So it’s worth taking a step back to examine the facts.

It’s true that the new auto pollution standards, which are built upon the long history of previous administrations’ tailpipe standards, are the strongest ever issued, and that more broadly, President Joe Biden has taken bolder steps to combat the climate crisis than any of his predecessors –– including signing into law the largest investment in clean energy, domestic manufacturing, and climate action ever made. 

But far from “banning” gas cars or “killing” the U.S. auto industry, those investments are increasing consumer choice while lowering costs and unleashing a U.S. manufacturing renaissance, having already driven forward 280 new EV and battery projects across the country totaling 172,000 new jobs. And the auto industry writ-large – after losing more than 75,000 jobs during Trump’s presidency – has added more than 250,000 under Biden.

The EV industry was already beginning to take off, because – as John Bozella, the president of U.S. automakers’ largest trade association said in a statement praising the new pollution standards – “the future is electric.” And despite the auto industry pivoting to faster, easier to maintain vehicles, MAGA Republicans and media outlets are spouting misinformation and gas car nostalgia, which Transportation Secretary Pete Buttigieg perhaps captured best by saying, “I feel like it’s the early 2000s and I’m talking to people who think we can just have landline phones forever.”  Now, with new incentives for domestic manufacturers and tax credits for consumers, Americans are building and reaping the benefits of that future; EV sales have more than quadrupled since President Biden took office and costs have fallen by more than $10,000 since he passed his signature law.

The new pollution standards won’t force a single existing car off the road, mandate the sale of a single EV, or prevent anyone from buying or selling new gas-powered cars. What they will do is save the average driver $6,000 in fuel and maintenance costs per vehicle while providing $13 billion in annual public health benefits as improved air quality spares Americans from thousands of preventable hospitalizations and deaths.

Below, we offer a deeper dive into key facts about EVs, Biden’s policies, their real-world implications, the political dynamics at play, and public sentiment about all the above:

BIDEN’S NEW POLLUTION STANDARDS FOR AUTOMOBILES

• FACT: Transportation is the largest source of U.S. carbon emissions, making EVs essential to combating the climate crisis after the hottest year on record; Biden’s new pollution standards will prevent more than 7 billion tons of carbon emissions.

• FACT: The standards will provide nearly $100 billion in annual net societal benefits, including $13 billion in public health from improved air quality. The American Lung Association found continuing an aggressive transition to EVs through 2050 would prevent nearly 90,000 premature deaths and 3 million pediatric asthma attacks.

• FACT: The new standards won’t force a single existing car off the road, mandate the sale of a single EV, or prevent anyone from buying or selling new gas-powered cars; instead, they’ll offer consumers more high-quality, affordable, and efficient choices, and save the average driver $6,000 per vehicle on fuel and maintenance.

• FACT: While critics –– largely the Big Oil and gas lobby –– claim the new standards will destroy the U.S. auto industry, the final rules were applauded by the U.S. auto industry’s leading trade association, along with the United Auto Workers (UAW), Ford, and GM, among others.

EVs + AMERICAN CONSUMERS

• FACT: Even before President Biden’s investments drove down prices, Consumer Reports estimated an average EV driver would save up to $1,700 per year –– 60% on fuel and 50% on maintenance –– compared to owners of similar gas-powered cars.

• FACT: New EV incentives for manufacturers have fostered aggressive innovation and competition in the market, increasing choice and driving down sticker prices — by roughly $14,000 over the past year — for consumers. In fact, some new EVs are already selling for cheaper than their gas peers –– and that may soon be the norm.

• FACT: Moreover, buyers can now access upfront tax credits worth up to $7,500 for new EVs and $4,000 for used EVs –– a perk that saved some 25,000 buyers roughly $135 million in the first five weeks of 2024 alone.

• FACT: EV sales are strong. More than 1.4 million EVs were sold in 2023 in the U.S., 9.1% of all passenger vehicles and EV sales have grown much faster than expected. New EDF analysis shows actual EV sales in 2023 exceeded over 85% of expert projections made in 2019 to 2022.

• FACT: EVs improve air quality and help create healthier communities. EDF quantified the health benefits from the proposed EPA standards and estimates that the clean car rule could prevent more than 32,000 premature deaths, avoid nearly 45,000 hospital and ER visits, prevent more than 16 million asthma attacks and avoid an estimated 6 million lost work and school days cumulatively by 2055.

EVs + U.S. MANUFACTURING

• FACT: President Biden’s clean energy investments have already driven forward 280 new EV and battery projects, creating 172,000 jobs as $160 billion flows into communities around the country. 

• FACT: These new opportunities at EV and battery manufacturing facilities are disproportionately good-paying jobs for hard-working Americans with strong labor protections –– which is what ultimately earned the UAW’s support.

• FACT: The auto industry has already added more than 250,000 jobs under the Biden presidency after losing more than 750,00 under Trump. And in another boon to both U.S. workers and consumers, the Biden Administration is making massive investments to build out a more robust and reliable nationwide EV charging infrastructure.

EVs, CHINA + ENERGY INDEPENDENCE

• FACT: While some claim new EV tax credits will benefit China, President Biden’s signature law includes explicit prohibitions on Chinese-made components and requirements for EVs to be assembled in North America to qualify. Bonus credits even incentivize companies to build their clean energy manufacturing facilities using domestically manufactured products.

• FACT: President Biden’s prohibitions on Chinese companies accessing U.S. EV tax credits are so stringent Beijing filed a formal complaint at the WTO, claiming the rules are unfair. And Biden separately ordered a national security investigation that effectively blocks Chinese smart cars from the U.S. market.

• FACT: A new analysis by EDF, based on data from Atlas Public Policy, shows that announced investments in the U.S. EV ecosystem have surged ahead of investments in China in the past three years, underscoring that U.S. clean car policies help position domestic manufacturing for success in a globally competitive market. 

• FACT: As the head of the chief U.S. automakers’ trade association said, “the future is electric” –– and China had long dominated the EV market. Moreover, the oil and gas industry relies heavily on components from China; Biden’s investments have bolstered American energy independence and leadership on the global stage.

ATTACKS ON EVs FROM THE FOSSIL FUEL INDUSTRY TRUMP + THE GOP

• FACT: In February, a Big Oil trade association launched a “major 7-figure” false ad campaign fear-mongering about a “car ban” – Republicans have been parroting that lie and many others from the industry. But they ran the exact same playbook in Virginia last year, and it failed miserably as Democrats won sweeping victories.

• FACT: Republicans took more than $100 million in campaign contributions from the fossil fuel industry across the 2020 and 2022 election cycles, and in turn, they’ve voted more than 30 times to repeal President Biden’s landmark clean energy plan, even as it disproportionately creates jobs in GOP-held districts.

• FACT: Big Oil has already shelled out millions this cycle to boost Trump, who gave them a $25 billion handout while steamrolling over 100 environmental protections in his first term and reportedly intends to wage “all-out war” on climate and clean energy if he wins a second term.

PUBLIC SENTIMENT ABOUT EVs

• FACT: A 2023 AP poll found 4-in-10 U.S. adults — and a majority under 45 — would consider buying an EV as their next vehicle. And the most commonly cited barrier was cost, which has dropped precipitously since the poll was conducted.

• FACT: A Yale University poll found that 72% of Americans support tax credits for people who purchase energy-efficient vehicles.  

• FACT: A Gallup poll found 6-in-10 Americans support tax credits for individuals who purchase EVs as well as investing in EV charging infrastructure. 

• FACT: A Data For Progress poll similarly found 7-in-10 voters supported tax credits for businesses that produce clean electricity like wind, solar and EVs.

• Fact: A poll by LCV underscored that a majority of voters in Michigan support government incentives to build EVs in that state and understand if we don’t invest in EVs that China will win the global manufacturing race. 
• FACT: By a 51-point margin, voters say they would back a candidate who stands up to oil and gas CEOs over a candidate who supports them.

• FACT: Two-thirds of voters now view climate change and extreme weather as kitchen table issues.

• FACT: Three-quarters of Americans back Biden’s effort to cut carbon pollution  in half by 2030

WHAT THEY’RE READING ABOUT EVs ACROSS THE COUNTRY…

• The Detroit News: LG Energy Solution to invest $3B in Michigan for battery supply deal with Toyota

• Columbus Dispatch: Honda, LG ramp up hiring as Fayette County electric vehicle battery plant hits milestone

• Pittsburgh Post-Gazette: With loan guarantee, Eos Energy’s Turtle Creek manufacturing expansion is under way 

• WGHP: EV charging company to expand with high-paying jobs in North Carolina

• Arizona Republic: Korean battery giant LG announces huge expansion of plans for battery factory in Queen Creek

• Wisconsin Public Radio: Bipartisan effort to unlock federal funds for EV charging stations moves forward

• WLTX: Electric vehicle battery plant to expand, invest $1.5 billion, create 1,080 new jobs in Florence, SC

• WREG: $1.9B electric vehicle battery plant planned in Marshall County, Mississippi

• Oklahoma City Sentinel: Canoo is shipping electric vehicles and expects to create more than 1,300 local jobs

• NOLA.com: A $500 million EV battery chemical plant officially coming to Jefferson Parish

• Memphis Commercial Appeal: Ford supplier Magna to invest $790 million in Tennessee and will create 1,300 new jobs

• AP: Toyota to invest $1.3B at Georgetown, Kentucky, factory to build battery packs and new electric SUV

• NBC 5 Dallas-Fort Worth: Plano lands electric vehicle charging manufacturing plant; adding 183 jobs

• Denver Post: Editorial: How to get an electric vehicle for less than $6,000 in Colorado

CONCLUSION

Take it from John Bozella, president of U.S. automakers’ largest trade association: the future is electric. We can either cede that future and the jobs that come with it to China, or we can continue harnessing American ingenuity to strengthen our economy, increase consumer choice, lower costs, improve our health and environment, and get out from the thumb of dictator-driven foreign fossil fuel economies. It doesn’t seem like a hard choice.

False attacks from the GOP and Big Oil can’t change the facts: the clean energy economy is already being built in America, and Americans are reaping the benefits.